Points to Remember:
- The Initial Public Offering (IPO) by Indian Railway Catering and Tourism Corporation (IRCTC) opened for subscription and was subscribed to 8% within the first hour.
- As of 1 pm, the issue was 33% subscribed.
- Through this IPO, the government is offloading 2 crore equity shares or 12.6% stake in IRCTC, which will bring down its stake to 87.4%.
- The price band of ₹640 crore IRCTC IPO has been fixed at ₹315-320 per share but retail investors and eligible employees would be offered a discount of ₹10 per share.
What is an IPO?
- An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.
- Public share issuance allows a company to raise capital from public investors.
About Indian Railway Catering and Tourism Corporation (IRCTC):
- Indian Railway Catering and Tourism Corporation is a subsidiary of the Indian Railways that handles the catering, tourism and online ticketing operations of the Indian railways.
- It is the world’s second busiest and highest of 15 to 16 lakh tickets every day.
- Parent organization: Indian Railways
- Headquarters: New Delhi
- Founder: Ministry of Railways
- Founded: 27 September 1999
Important Possible questions based on above News:
- After the launch of IPO what will be the new Stake holding of Indian Railways in IRCTC brand? 87.4%
- What does IRCTC stands for? Indian Railway Catering and Tourism Corporation